Verizon Layoffs: New CEO Plans 15,000 Job Cuts in Major Restructure
We’ve just learned that Verizon Communications is planning to cut around 15,000 jobs in the U.S. under its newly appointed CEO. This marks the largest-ever layoff program in the company’s history. We’ll explore why this drastic move is happening, how it will affect employees and the market, and what it signals for Verizon’s future.
Background: Verizon’s Current Position
Verizon has faced a challenging stretch. In recent quarters, its subscriber growth has slowed. For example, the company added just 44,000 postpaid wireless subscribers in the latest quarter, far behind rivals. Competition is fierce: AT&T Inc., T‑Mobile US, Inc., and cable operators such as Comcast Corporation are bundling services and offering aggressive promotions. At around 100,000 U.S. employees as of early 2025, Verizon isn’t small. So when it says it will cut 15,000 jobs, it is indeed significant.
What the New CEO Announced
The new CEO, Dan Schulman, formerly of PayPal, took charge in October 2025. He announced that Verizon will cut about 15,000 jobs, roughly 15% of its workforce. These cuts will focus especially on non-union management roles and corporate retail operations. In fact, about 180–200 corporate-owned stores may be converted to franchise operation, meaning those store employees would no longer be on Verizon’s payroll. The timeline is already very near: the cuts are expected to begin within a week or so of the announcement. Verizon’s own statement from Schulman underlines the aim: “We will be a simpler, leaner and scrappier business.”
Why Verizon Is Cutting 15,000 Jobs
There are several reasons behind this major restructuring:
- Cost-cutting and efficiency: The telecom business is brutal. To stay competitive and profitable, Verizon needs to trim its expense base. Schulman has said cost reductions will be “a way of life.”
- Shifting priorities: Verizon is investing heavily in 5G, fiber broadband, and other infrastructure. To free up capital, it must reduce legacy costs.
- Slow subscriber growth + high prices: Verizon has maintained some of the highest prices in its segment. That strategy is under pressure as customers hold onto devices longer and turn to cheaper rivals.
- Competitive pressure: With rivals bundling fixed-line and mobile services, Verizon must step up its game or risk losing market share.
Financial Impact of the Restructure
The planned cuts are expected to yield major savings. While Verizon has not given a precise dollar figure for cost savings yet, analysts estimate the move could free up billions of dollars over the next 12–24 months. Investors responded positively: Verizon’s share price rose about 1.5% on the news. Still, the key question is whether cost savings will offset rising investments in marketing, customer retention offers, and net, work build-out.
How Employees Will Be Affected
For the roughly 15,000 employees impacted, changes will be real and deep:
- Severance and transition programs will likely be offered, though details are not fully public yet.
- Many cuts will come in management and corporate roles; fewer are expected in unionized retail front-line roles.
- Employees in converted store locations may move to franchises, changing employer and possibly employment terms.
- Morale and culture may take a hit: when a company commits to major cuts, uncertainty follows. We will see how Verizon handles the human side of this.
Industry Implications
What the Verizon layoffs mean beyond the company:
- The U.S. telecom sector may see ripple effects: suppliers, contractors, and small local service providers might feel the pressure.
- With fewer workers, network build-out efforts (especially fiber and 5G) could slow or shift strategy.
- The move sends a signal: major carriers are under pressure to streamline and cannot rely purely on services. For competitors: Verizon’s actions may prompt others to evaluate their own cost structures and staffing levels.
Conclusion
In sum, Verizon’s decision to cut 15,000 jobs under its new CEO marks a bold shift. The company enters a new phase: less cost, more agility, and a renewed focus on value. For employees and the industry, the effects will be significant. For us as observers, the question remains: will these changes help Verizon reclaim its footing and thrive in a tougher telecom market? The next 12 months will tell.
FAQS
Verizon is cutting 15,000 jobs to lower costs and run the company more smoothly. The company faces slow growth and strong competition, so it wants a simpler and cheaper structure.
Verizon is laying off employees because its new CEO wants to reshape the company. He plans to remove extra roles, save money, and focus more on new technology and better network performance.
Many customers are leaving Verizon because its prices are high and rivals offer cheaper deals. Some users also say they get better network value from other carriers in their area.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
